This study reports results of a nationwide survey on overall working capital policy of small manufacturing firms. The survey instrument used was a modified version of the 1980 Smith and Sell study [18] on large firms. A detailed 36-question form queried firms on their overall working capital...

The research in small firms financing is characterized by a lack of a theoretical framework. One basic assumption in this study is that agency theory can provide an essential framework to explain the interaction between informal and formal venture capitalists and their portfolio firms. Five...

While all firms experience varying degrees of difficulty in complying with environmental regulations, small firms have their own set of special problems in dealing with environmental compliance. The lack of legal and engineering staffs, the management structure, and a high cost per unit of...

The beneficial economic effects of entrepreneurial activity can only be realised if such activity is relatively unconstrained in both product and factor markets, finance has been widely identified as a potential constraint on entrepreneurial activity due to either debt or equity gaps. However,...

A fundamental understanding of small businesses begins with an adequate definition of what constitutes a small business. Often the definition of a small business incorporates the definitions employed by the Small Business Administration (SBA) which, in part, uses the number of employees as the...

This paper examines the role of interest rates and securities within the context of the small firm - bank lending relationship and questions whether banks alter their lending conditions on the basis of specific firm characteristics and the nature of the borrowing undertaken. The results suggest...

This paper reports survey results regarding leasing practices of small firms. Small firms that lease are more likely to be relatively large manufacturing firms which exhibit higher debt ratios and higher sales growth. The survey responses as well as empirical analyses of pertinent data reveal...

This paper examines the characteristics of UK small firm bank finance and the causes of the frequently strained relationship between small firms and banks in the UK. Debt, credit rationing, and call option problems under the UK system are examined. The bank’s solutions including the...

This article concentrates on internet resources that are available to those interested in entrepreneurial and small firm finance. Specifically, I present web pages that focus on general entrepreneurial issues and different avenues for acquiring capital. The three main areas of external financing...

In urban renewal policy, it has become a widespread goal to revitalise neighbourhood economies. The rationale for these measures derives, to a great extent, from the concept of regional economic clusters, and, not surprisingly, one of their key objectives is to activate local inter-firm...